Which of the following accounts will be closed to Income Summary?
A)Prepaid Expenses.
B)Unearned Revenue.
C)Dividends.
D)Depreciation Expense.

Question

Quizplus · Accepted Answer

Depreciation Expense is an income statement account that is closed to the Income Summary at the end of the accounting period to transfer its balance as part of the process of closing the books. Prepaid Expenses and Unearned Revenue are balance sheet accounts, and Dividends is a distribution to shareholders that is not closed to Income Summary.

Which of the Following Accounts Will Be Closed to Income